Deepak Fert to invest Rs 100 cr. for expansion

Business Line - July 29, 2001

Our Bureau, PUNE, July 28

DEEPAK Fertilisers and Petrochemicals Corporation Ltd has chalked out plans to invest about Rs. 100 crore in the next 18 months for expanding capacities of its various plants and putting new projects onstream. The company is also simultaneously in talks with a company in Iran for setting up a gas-based ammonia plant after its earlier talks with the Tanzanian Government for a similar project fell through.

The company's Chairman, Mr. C.K.Mehta, said plans are being firmed up to set up a port-based storage facility with a capacity between 15,000 tonne and 30,00 tonne to enable it to store ammonia and methanol. The facility which will cost between Rs. 30 crore and Rs. 60 crore depending on the size of land available to the company, will enable it to budget for the shortage of gas and resultant increase in price.

"The storage facility will enable the company to put the capacities of its downstream plants to better use'', he said at the annual general meeting of the company. The Managing Director, Mr. D.C. Mehta, said that in view of the increased market acceptance of its premium fertilisers and the increased availability of imported ammonia at reasonable prices, the company is increasing the capacity of its ammonium nitrate plant to 3,00,000 mtpa from the current level of 2,30,000.

Mr. Mehta said the sales of the company for the first quarter of the current financial year at Rs. 123 crore are along the lines of the corresponding period last year. The timely onset of monsoon and prediction of a normal agriculture season along with a buoyant industrial chemical sector is expected to sustain the momentum achieved in the last financial year.

The company closed the last financial year with a profit after tax of Rs. 62.70 crore, up from the Rs. 58.33 crore in the previous year.

The company, which is undertaking a drive to increase cost-effectivity in operations is also currently studying the feasibility of rationalising its staff at all levels by 15-20 per cent, Mr. Mehta said adding that it has appointed consultants to prepare a report on the situation which is expected to be ready in the next three months. The company currently has an employee strength of 900 people.

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